Which Stock is the Best Value Option?
Investors who are looking for stocks within the Financial – Miscellaneous Service sector might consider Blackstone Inc. (BX), or Grupo Financiero Bankorte SA de CV (GBOOY). Which stock offers the best value for money? We will need to look closer.
The best way to find great value opportunities is to combine a strong ZacksRank with a high-quality grade in our Value category of the Style Scores System. Our Style Scores system grades companies based on specific traits. The Zacks Rank targets companies that have positive earnings estimate revision trends.
Grupo Financiero San Antonio de CV has a Zacks Rank 2 (Buy), while Blackstone Inc. is a Zacks Rank 4 (Sell). Investors should be confident that GBOOY will see positive revisions in their earnings estimates. The Zacks Rank favors stocks with a recent earnings estimate update. This is only one piece of the value puzzle.
Value investors will also look at many tried-and-true figures in order to find stocks they believe to be undervalued at current share prices.
Our Value category highlights undervalued businesses by looking at key metrics like the P/E, earnings yield, cashflow per share and many other fundamentals that have been used over the years by value investors.
Currently, GBOOY has a forward PE ratio of 8.20 and BX has a forward PE ratio of 16.24. We also noticed that GBOOY’s PEG ratio is 0.46. This is similar to the P/E ratio. The PEG ratio takes into account the company’s expected earnings growth rate. BX currently boasts a PEG of 2.03.
Another important valuation metric for the GBOOY stock is its P/B rate of 1.84. The P/B is used to determine a stock’s market value and its book value. Total assets minus liabilities are the definitions of this ratio. BX, for comparison, has a P/B ratio of 2.98.
These metrics and many others help GBOOY to earn a value grade of B. BX, on the other hand, has been awarded a value grade of C.
GBOOY has a solid earnings outlook and we believe that GBOOY is the better value option.
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Grupo Financiero Banorte SAB de CV (GBOOY) : Free Stock Analysis Report
Blackstone Inc. (BX) : Free Stock Analysis Report